The Banking Executive Magazine - April 2023 Issue

Crossing the Red Line However, the fact that more firms have not divested suggests that, in addition to the moral argument for doing so, their boards are weighing other salient considerations that bear on their fiduciary responsibilities. The extent to which the moral argu- ment could override these consider- ations remains to be seen. The parallels to the debate over di- vesting from South Africa in the 1970s and 1980s are evident, with concerns that too few firms will quit voluntarily. Although there was no military operation in another country in the case of South Africa, there was an active clampdown by Western countries. The biggest question raised by this research is the extent to which senior corporate executives are aligned with Western policymakers who aim to decouple. If they are as aligned as they claim to be, there seems to be a mismatch between what policymak- ers want and what businesses can do when it comes to divesting rapidly without incurring significant losses. As the military operation enters its second year, the human and eco- nomic toll continues to climb, and the commercial and moral ramifica- tions of the war, along with the en- trenched geopolitical rivalry it portends, will be felt much more widely. The implications for the busi- ness world are clear. the BANKING EXECUTIVE 38 ISSUE 172 APRIL 2023